Secretary for Transport and Logistics Lam Sai-hung said today (May 31) that the cost structure of bus companies lacks flexibility.
"The companies' costs on staffs account for 50% to 60% of the total operating expenses, and fuel prices also account for part of it, which can not be significantly reduced," he said.
Lam also admitted that the bus companies have met difficulties in recent years, and there exists a need for fare increases.
The Chief Executive and Executive Council yesterday approved the fare increase applications of five franchised bus companies, including KMB's actual average increase of 3.9% and LWB's increase of 4.2%, and the new fares will be implemented from June 18.
According to Lam, the government's approval of the increase rate, which reflects the situation of full resumption of cross-boundary travel and a significant rebound in passenger volume in Hong Kong, is based on the latest data and projections of future costs and benefits.
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